Which of the following is not a type of financial statement analysis? (2024)

Which of the following is not a type of financial statement analysis?

The correct answer to the given question is b. Circular analysis. There is no method called circular analysis in financial statement analysis. This is a method that can be used in statistics, however.

Which of the following is not a type of financial statement?

Explanation: Trial Balance is not a financial statement. Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. It is usually prepared at the end of an accounting period to assist in the drafting of financial statements.

Which of the following are types of financial statement analysis?

What are the 5 financial statement analysis?

What are the five methods of financial statement analysis? There are five commonplace approaches to financial statement analysis: horizontal analysis, vertical analysis, ratio analysis, trend analysis and cost-volume profit analysis. Each technique allows the building of a more detailed and nuanced financial profile.

What does financial analysis not include?

The financial analysis does not contemplate cost price level changes. The financial analysis might be ambiguous without the prior knowledge of the changes in accounting procedure followed by an enterprise.

What are the 4 financial statements?

Which is not one of the 4 types of financial statements?

Solution Summary: The author explains that the Audit Report is not one of the four basic financial statements. The balance sheet, income statement, statement of retained earnings, and cash flow statement are the other options.

What are the three financial statement analysis?

The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What are the two types of financial analysis?

Fundamental analysis and technical analysis are the two main types of financial analysis. Fundamental analysis uses ratios and financial statement data to determine the intrinsic value of a security.

What is the financial statement analysis?

Financial statement analysis (or just financial analysis) is the process of reviewing and analyzing a company's financial statements to make better economic decisions to earn income in future.

What are the types of financial statements?

The three main types of financial statements are the balance sheet, the income statement, and the cash flow statement. These three statements together show the assets and liabilities of a business, its revenues, and costs, as well as its cash flows from operating, investing, and financing activities.

What are the 6 components of a financial analysis?

A business financial plan typically has six parts: sales forecasting, expense outlay, a statement of financial position, a cash flow projection, a break-even analysis and an operations plan. A good financial plan helps you manage cash flow and accounts for months when revenue might be lower than expected.

What is financial and non financial analysis?

Common financial metrics include earnings, profit margin, average order value, and return on assets. Outcome-based measures such as customer satisfaction, market share, category ownership, and new product adoption rate fall into the non-financial metrics.

What are the components of financial statement analysis?

Financial statements can be divided into four categories: balance sheets, income statements, cash flow statements, and equity statements.

Which of the following is required for financial analysis?

Both the Statement of Profit and Loss and Statement of Financial Position i.e. Balance Sheet are used for financial analysis.

What are the 4 types of financial statements and their purpose?

They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.

What are the 4 basic financial statements in order of preparation?

The four financial statements (in order of preparation) are the income statement, statement of retained earnings (or statement of shareholders' equity), balance sheet, and statement of cash flows.

Why are there four financial statements?

All four accounting financial statements accurately portray the company's overall financial situation. The income statement records all revenues and expenses. The balance sheet provides information about assets and liabilities. The cash flow statement shows how cash moves in and out of the business.

Which is not one of the three main financial statements?

Answer and Explanation:

The correct option is (c) Retained earnings statement. So, we can see that options (a), (b) and (d) are part of financial statement but not the retained earnings statement.

What are the three main types of financial statements?

The balance sheet, income statement, and cash flow statement each offer unique details with information that is all interconnected. Together the three statements give a comprehensive portrayal of the company's operating activities.

Which of the following are the types of financial statements except?

Answer and Explanation: Correct answer : Option (e) Statement of Cash Flows is the correct answer because the basic financial statements include Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows, but does not include the Statement of Changes in Assets.

What is an example of financial statement analysis?

Financial Analysis Ratio Examples

If a business has $500,000 in current assets and $400,000 in current liabilities, the current ratio would then equal 1.25, which shows the business can afford its expenses and pay off current liabilities with its assets.

How to do financial statement analysis?

Which is the most important financial statement?

Types of Financial Statements: Income Statement. Typically considered the most important of the financial statements, an income statement shows how much money a company made and spent over a specific period of time.

What are the two most used financial statements?

Another way of looking at the question is which two statements provide the most information? In that case, the best selection is the income statement and balance sheet, since the statement of cash flows can be constructed from these two documents.